All-risk cargo insurance provides protection for the Insured’s goods during the normal course of transportation, from the place of dispatch to the place of receipt as stated in the freight bills, subject to the marine cargo policy provisions.
What Is Covered?
- Goods in which the insured has an interest or a responsibility for insuring are insured from the moment they leave the point of shipment (the origin), and the coverage continues in due course of transit.
- Temporary storage of the goods beyond the control of the insured that is normal during the course of transportation, such as intermediant storage at a logistic provider’s location, at a warehouse awaiting consolidation or packaging into overseas containers, or in a transit shed in a port of loading pending the arrival of the intended vessel.
- The insured stopping the transit by directing the goods be placed in a warehouse for storage, temporary or otherwise, other than during the normal course of transportation, terminates coverage, unless the insured obtains the insurance company’s agreement for the additional storage requirements and pays an additional premium for such extended cover.
- While in Customs awaiting inspection and import/export clearance
- The normal course of transportation, including deviations, delays, re-shipments, transshipments, or any other variations out of the insured’s control. If the cargo is unforeseeably diverted during transit, then the insurers must be immediately notified in writing once the assured is aware.
Where In the World Is It Covered?
The all-risk policy’s Geographic Scope outlines which transit routes are covered. An all-encompassing marine cargo policy will provide coverage for goods insured while on approved conveyances from Ports and/or Places in the World to Ports and/or Places in the World including worldwide inland conveyances—except as prohibited or restricted by OFAC Sanctions or embargoes. Be leery of policies that do not provide coverage for ocean vessels or that provide coverage only for inland conveyances in the 48 United States of America.
When Is the Point of Termination?
Coverage terminates upon:
- Delivery to the destination warehouse of the consignees named in the freight bills.
- Delivery to any other warehouse or place of storage before named destination, for storage other than in the ordinary course of transit or for allocation/distribution purposes.
- 60 days after completing discharge of the goods from a vessel
- 30 days after completing discharge of the goods from an aircraft
Policy Extensions
In some cases, insurers may extend the duration of cover on a month-to-month basis when the 60/30-day limited has been exceeded. This would incur payment of an additional premium.
Examples:
- When goods being carried via overland transit from the port of discharge won’t reach ultimate destination within 60 days.
- When goods cannot be unpacked and inspected in the warehouse at the port of delivery.
It is the insured’s responsibility to seek appropriate extension of cover as needed, before expiry of cover.
For questions related to Duration of Cover or other details of a marine cargo policy: